09:37 PST: Steve announces a long awaited iTunes Movie Rental service.

Apple has come a long way in movie and song downloads via iTunes, but Steve explains that their current numbers certainly aren't enough. Apple has sold 7 million movies, 125 million TV shows, and last week Apple sold their 4 billionth song. Today Apple will be releasing iTunes movie rentals for use on all of their video playing devices. Movie rentals will cost $3.99 for new titles, and $2.99 for older titles. Movie rentals are available for 30 days after buying, but the catch is once started, the movie only has 24 hours to be watched.

All major studio's are involved in iTunes movie rentals which will make pretty much all movies in theaters available for rental. iTunes will have movies for rental today, and will have over 1000 movies for rental by the end of February.